The naysayers miss the point. The fact that the government stepped out of its cocoon and made the data public is a giant step in the move toward knowing what we pay for care and why. The problem is not that elites in the healthcare academy wrote about this a decade ago. The problem is the CMS data represents half a loaf.
Steve Brill got it about right. It’s true that most people know hospital care is costly, but as Brill demonstrated in his landmark “Bitter Pill” piece in Time earlier this year, most Americans don’t know why. Writing for Time’s blog, Swampland, last week, he suggested that the prices should be the starting point for reporters to ask their local hospitals to explain their pricing. Hard questions are in order.
Brill also zeroed in on another next step in the quest for healthcare transparency, a debate that could use more attention—the idea of making insurance companies disclose exactly what they pay hospitals and other providers for their services.
I would add a third step. Before patients really understand what they’re paying or companies have paid, they need uniform, standardized disclosures. The hodge-podge of Explanations of Benefits, or EOBs, we all receive do not help us understand pricing on the part of providers or insurance companies. There’s little clarity and no uniformity. Without that, comparisons are virtually impossible. Journalists could take a look at these EOBs and talk to all the people who scratch their heads at them, and maybe even crusade for clarity.
Meanwhile, bravo to the media outlets that covered the CMS story. Now they need to carry it further.
A magazine editor shops for health insurance
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